Frederick Holzgrefe on business expansion
From Holzgrefe: Uncertainty eased with tax bill and tariff deals, helping customer outlook · · CNBC Television
“Last year we were in the midst of an organic expansion. We added 21 facilities. Those are investments that we've put in place for the long term. So we see the expense headwinds and the related sort of inefficiencies of those openings, but we saw significant improvement from Q1 to Q2 this year, which is a positive trend and bodes well for our success going forward.”
On , Frederick Holzgrefe, President, Chief Executive Officer & Director at SAIA INC, spoke about business expansion during Holzgrefe: Uncertainty eased with tax bill and tariff deals, helping customer outlook on CNBC Television.
About Frederick Holzgrefe
Frederick Holzgrefe, president and CEO of Saia, discussed the company's performance and industry conditions in two interviews in 2025. He noted that Saia added 21 facilities in the prior year as part of an organic expansion, and that the company saw sequential efficiency improvements from the first quarter to the second quarter of 2025, with its operating ratio improving from around 91 to 87.8. Holzgrefe stated that a fair amount of uncertainty had eased for customers following the passage of a tax bill through Congress and recent tariff agreements, though he said he did not know if customers were "necessarily positive yet." He described the underlying costs in the less-than-truckload business as inflationary and said the company emphasizes recouping those costs. Holzgrefe also addressed the impact of tariffs, saying the company's role is to facilitate and assist customers in adjusting to uncertainty. He suggested that tariffs could lead to more domestic manufacturing or nearshoring, which he described as potentially good for the LTL business over time. He said Saia has focused on expanding its network, adding 69 facilities since 2017, and aims to become a national network closely aligned with customer needs. Holzgrefe characterized the LTL business as competitive and said Saia differentiates itself through customer focus. He added that he did not know whether Federal Reserve rate decisions would necessarily slow or impact investment, and that uncertainty about the rules of engagement going forward was a larger factor.